Binance, the world’s largest cryptocurrency exchange, has injected
capital into distressed South Korean crypto exchange, GOPAX, two years after it
shut down its affiliate in the country due to low patronage.
Bloomberg reports that the crypto exchange purchased a majority stake
in GOPAX. Earlier in the month, Finance Magnates reported that Binance was
making plans to acquire GOPAX CEO Lee Jun-Haeng’s
41.2% majority shares in the crypto exchange.
However, in a blogpost published on Friday,
Binance only disclosed investing in GOPAX without stating the amount of capital to be released. The top crypto exchange, however, pointed out that the investment originates
from the $1 billion cryptocurrency recovery fund it launched in November last year in the
aftermath of the collapse of once-leading crypto exchange, FTX.
FTX’s collapse created a contagion that affected a number of digital
assets firms including BlockFi and Genesis. Crypto
lender Genesis suspended withdrawal on its platform in
November, citing “liquidity crunch.” GOPAX also made a similar
move to its yield product GoFi because of its exposure to Genesis.
Watch the recent FMLS22 session on ongoing transformation in the crypto market structure.
Binance Says Withdrawal Will Restart on GOPAX
However, Binance’s new capital in GOPAX means that the South Korean
crypto exchange can fund GoFi users’ withdrawal requests on staked deposits and
interests. GOPAX has been working closely with local regulators and industry
stakeholders since last year in an effort to raise funds, Binance said.
“We hope that taking this step with GOPAX will further build the Korean
crypto and blockchain industry,” Changpeng Zhao, Binance’s Co-Founder, noted in
the blogpost.
The leading crypto exchange also noted that it remains committed to
partnering with regulators and crypto stakeholders in South Korea “to explore
how Binance can leverage its technology and liquidity to support the local
ecosystem.”
Binance Seeks Global Presence
Binance’s re-entry into South Korea through its investment in GOPAX is
one of several expansionary efforts the leading exchange has made in recent
months. Earlier this month, the exchange got its Swedish registration, marking its 7th
regulatory license in the European Union.
Across the globe, the digital asset
company is now licensed in 15 jurisdictions. This includes its recent license acquisition in Japan following its
complete acquisition of Sakura Exchange Bitcoin, a crypto platform regulated by
the Japanese Financial Services Agency. In addition, Binance recently introduced off-exchange settlement to its institutional investors.
Binance, the world’s largest cryptocurrency exchange, has injected
capital into distressed South Korean crypto exchange, GOPAX, two years after it
shut down its affiliate in the country due to low patronage.
Bloomberg reports that the crypto exchange purchased a majority stake
in GOPAX. Earlier in the month, Finance Magnates reported that Binance was
making plans to acquire GOPAX CEO Lee Jun-Haeng’s
41.2% majority shares in the crypto exchange.
However, in a blogpost published on Friday,
Binance only disclosed investing in GOPAX without stating the amount of capital to be released. The top crypto exchange, however, pointed out that the investment originates
from the $1 billion cryptocurrency recovery fund it launched in November last year in the
aftermath of the collapse of once-leading crypto exchange, FTX.
FTX’s collapse created a contagion that affected a number of digital
assets firms including BlockFi and Genesis. Crypto
lender Genesis suspended withdrawal on its platform in
November, citing “liquidity crunch.” GOPAX also made a similar
move to its yield product GoFi because of its exposure to Genesis.
Watch the recent FMLS22 session on ongoing transformation in the crypto market structure.
Binance Says Withdrawal Will Restart on GOPAX
However, Binance’s new capital in GOPAX means that the South Korean
crypto exchange can fund GoFi users’ withdrawal requests on staked deposits and
interests. GOPAX has been working closely with local regulators and industry
stakeholders since last year in an effort to raise funds, Binance said.
“We hope that taking this step with GOPAX will further build the Korean
crypto and blockchain industry,” Changpeng Zhao, Binance’s Co-Founder, noted in
the blogpost.
The leading crypto exchange also noted that it remains committed to
partnering with regulators and crypto stakeholders in South Korea “to explore
how Binance can leverage its technology and liquidity to support the local
ecosystem.”
Binance Seeks Global Presence
Binance’s re-entry into South Korea through its investment in GOPAX is
one of several expansionary efforts the leading exchange has made in recent
months. Earlier this month, the exchange got its Swedish registration, marking its 7th
regulatory license in the European Union.
Across the globe, the digital asset
company is now licensed in 15 jurisdictions. This includes its recent license acquisition in Japan following its
complete acquisition of Sakura Exchange Bitcoin, a crypto platform regulated by
the Japanese Financial Services Agency. In addition, Binance recently introduced off-exchange settlement to its institutional investors.
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Solomon Oladipupo